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Integrated
Annual
Report
2015
Annual
Report
2015
Cellnex considers quality, environment, occupational health and safety, R&D+i and information security as fundamental values of its corporate culture, promoting policies to achieve excellence in these areas, and responding to the expectations of its stakeholders.
The Company is actively involved in European organisations of which it is a member on the drafting of standards and the implementation of advanced technological solutions in the various markets in which it operates: broadcasting, Smart Cities, IoT, etc. This cooperation also extends to customers and suppliers, with whom Cellnex participates in many R&D+i projects, and works together on various initiatives to publicise and disseminate new developments.
Cellnex’s relationship with its customers is based on providing high added value and high quality services, through which it establishes close, stable and constantly improving relationships. Given the type of service is provides, Cellnex’s customer base is composed of a small number of large customers.
Cellnex’s relationships with external customers centres around the account manager, an employee who has a deep understanding of all significant events affecting the customer. This management style is designed to provide a personalised service and to improve response time and overall customer satisfaction.
One of the basic aspects of the service provided focuses on the management of incidents, complaints, inquiries and claims about the operation of the service, in real time and after it has been provided.
The Company has established a number of communication channels with customers, such as those contained in the service-level agreement (SLA) reports, or the biennial studies of perceived customer satisfaction, the outcome of which feeds into action and improvement plans.
These studies were established with the following specific objectives:
Satisfaction study 2015
The 2015 satisfaction study is the first study conducted since the change from Abertis Telecom to Cellnex Telecom.
The study incorporates the new segmentations corresponding to the three business lines.
Participation was high, and the study demonstrated an excellent overall customer satisfaction level of 86.8% (satisfied and very satisfied).
The study confirms that Cellnex Telecom has high levels of customer loyalty and recommendation.
Information security management
Keeping customer information secure is a key factor underlying the Cellnex customer management model. This objective has led the Company to implement an application for managing and validating the documentation required for accrediting customers, to ensure that they comply with the regulations safeguarding information security and data protection.
An audit was conducted to monitor the commitment to ensure compliance with Royal Decree 171/2004 (implementing Article 24 of Law 31/1995 of 8 November 1995 on occupational health and safety, regarding the coordination of business activities) and Law 31/1955 on occupational health and safety, reflected in the various agreements on the coordination of business activities between Cellnex and its main customers. This process involved reviewing the accreditation documentation of a representative sample of workers and companies (in the Group or subcontractors) that these customers had declared in the control application.
The scope of the documents requested was performed in accordance with the criteria and requisites established in the Cellnex Manual of Business Activities Coordination.
Commitment to customers
Cellnex’s relationship with its customers is governed by the principles of responsible management and transparent communication. These principles, among other practices, are reflected in the pricing mechanisms for the various services the Company offers, which always reflect our desire to enable the customer to see the final cost of services.
Regarding the television signal broadcast carrier service, Cellnex Spain has to provide its nationwide network access services to third-party operators, as stated in the resolution of 30 April 2013 of the National Commission for Markets and Competition (CNMC). The obligations laid down in the resolution include publishing a reference offer for the provision of wholesale access service that is sufficiently disaggregated to ensure that they do not have to pay for resources that are not needed for the regulated service. In order to fulfil this obligation, Spain Cellnex developed the reference offer for access to Cellnex, SA transmission centres (ORAC) for the first time in October 2009. The ORAC describes the centres and services, procedures for providing them, technical conditions and prices for providing the wholesale access service that will give authorised operators access to the broadcasting centres in the Cellnex national network on transparent, objective, non-discriminatory and cost-oriented terms. This information is updated periodically.
Providers
Cellnex pursues an active policy of cooperation with suppliers in developing efficient procurement and technological solutions that result in improvements in the services it provides to its customers. Furthermore, Cellnex promotes the continuous improvement of its suppliers through the use of best practices in its procurement processes.
Cellnex is committed to local value generation by using 100% local suppliers in Italy, and 98% in Spain. Wherever possible, priority is given to purchasing goods and services from local suppliers, meaning from within the same country.
Cellnex’s providers and suppliers are obligated to know the Company’s corporate policies and ensure that they comply with each of them. They also have a duty to meet the specific requirements of corporate social responsibility in carrying out their work, and to inform all their employees and subcontractors of these rules and requirements.
Supplier assessment system
To ensure that its suppliers align and comply with corporate policies and values, Cellnex has a supplier assessment system. This system is based on the rating of suppliers’ performance, which classifies them into three categories, “A” being suppliers that best meet the required criteria and “C” being suppliers that need to implement an action plan in order to satisfy the Company’s criteria.
In 2015, in Spain, 1,683 suppliers were assessed, with the result that 1,297 suppliers were rated A, 370 suppliers were rated B and 15 suppliers were rated C. An action plan will be agreed with this last group with a view to improving their performance and thus bring their service level up to Cellnex requirements.
The Company is also in the process of defining a supplier selection policy, embodying issues related to social impact.
Regarding existing relationships between Cellnex and suppliers accessing its premises, the Company lays down requirements for coordination on occupational health and safety with suppliers of works and services in order to meet the obligations under the Law on occupational health and safety and other regulations that complement it.
Suppliers also undertake to apply the necessary preventive measures to avoid adverse environmental impacts during their work, including preventive measures and, should any occur, necessary remedial action to address them. In this regard, before commencing work, suppliers are given information that includes a form setting out the conditions related to environmental factors.
Integrated information management
A computer application is used to manage and validate all the documentation required in the supplier accreditation process, whether they are companies or individual workers.
The aim is to establish requirements for coordinating occupational health and safety between Cellnex and suppliers of works and services in Cellnex Telecom facilities, with a view to complying with its obligations under Article 24 of Law 31/95 on occupational health and safety, and Royal Decree 171/2004.
This applies to suppliers, and by extension to their subcontractors, working in Cellnex Telecom facilities.
The associated environmental requirements are laid down for activities carried out and services provided by suppliers working in and for Cellnex Telecom.
Cellnex has a close relationship with the various public administrations in Spain and in Europe.
The services associated with Cellnex’s broadcasting business are regulated primarily by the State administration responsible for communications (currently the State Secretariat for Telecommunications and the Information Society, under the Ministry of Industry). As Cellnex is a wholesale operator with significant market power (SMP) for the broadcast carrier service of the television signal, the National Commission for Markets and Competition (CNMC), which has a branch specialising in telecommunications, is also relevant to the Company. Responsibility for security, the environment and construction is also shared between the Autonomous Community and local administrations. Last, but increasingly important, is the European administrative and regulatory context. In this area, Cellnex plays an active role in defending the industry’s positions, especially with regard to the allocation of radio spectrum to audiovisual broadcasting services.
Cellnex action and participation in relevant industry associations
European framework
Cellnex is a founding partner and active member of:
International level
Cellnex actively participates in sectoral working groups such as Digital Video Broadcasting (DVB) for the definition of new technological standards.
Success at the World Radiocommunication Conference WRC-15
The ITU World Radiocommuni-cation Conference, held in Geneva in November 2015, closed with a decision to allocate the sub-700 MHz UHF band for the exclusive use of DTT in “Region 1” (Europe, Africa, the Middle East and Central Asia) until at least 2023. A shared position on allowing a time horizon for stable development of DTT for the next eight years, without any risk of changes in spectrum use, was defended by Cellnex.
The decision adopted at WRC-15 will have a positive impact on the coordination of the UHF spectrum in the European Union, furthermore confirming the forecasts made in the “Lamy Report” issued by the European Commission in 2014, in terms of laying the necessary foundations - in this case, reserving spectrum - to allow DTT to continue to operate normally in a stable framework until at least 2030.
Hybrid DTT interactivity conference
As part of its policy of active cooperation with suppliers and customers, Cellnex organised the third edition of the “Hybrid DTT interactivity conference”, aimed at facilitating development of interactivity with greater assurance of interoperability between devices and applications.
The conference set out to allow manufacturers to test their new receiver models along with the apps that are being developed by broadcasters, for whom this event provides an opportunity to test their apps on the latest models of television sets. In addition to the features that form part of the Hybrid DTV specification, they tested some of the improvements incorporated into the new version of HbbTV (HbbTV 2.0) concerning the distribution of content in 4K (Ultra HD).
The TV manufacturers which took part in the event were Panasonic, Sony, TP-Vision (Philips), LG, Samsung, TCL Thomson, Vestel, and Sharp, together with the following broadcasters: Radio Televisión Española, Antena3, Euskal Irrati Telebista and TV de Catalunya.
4K SUMMIT
At the 4K Summit conference held in Seville in November 2015, two worldwide developments were presented demonstrating progress in the differentiating features of Ultra High Definition (UHD) in relation to HD:
Mobile World Congress MWC-2015
At the world’s leading mobile telecommunications event, Cellnex presented several of its pioneering connectivity, telecommunications and broadcasting solutions. These included the roll-out of the first IoT network to be launched in Spain, specifically designed to offer connectivity solutions dedicated to the “Internet of Things” and the first 4K TV transmission in Spain was made via Hybrid DTT.
Responsible and committed business management Membership of Corporate Social Responsibility initiatives
In November 2015 Cellnex joined the United Nations Global Compact as an expression of its commitment to the incorporation of the corporate social responsibility into its operational strategy and organisational culture. The United Nations Global Compact is an international voluntary initiative that includes more than 8,000 companies and institutions across 135 countries.
Under this agreement, Cellnex Telecom undertakes to promote and spread corporate sustainability policies and practices based on the 10 key principles promoted by the United Nations, focusing on the areas of human rights, labour standards, environment and combating corruption in business activities.
Cellnex’s commitment to the United Nations Global Compact is part of its Corporate Social Responsibility (Corporate Social Responsibility) programme, fully integrated into the links of the Company’s value chain.
Management systems
Cellnex has implemented a management system to support its organisational model. The management system provides a framework adopting a systematic approach in carrying out processes, thereby ensure that they are effective. It also allows a procedure to be established to guarantee the quality of the services provided and to ensure that the activity is carried out in compliance with current legislation.
As a demonstration of its commitment to quality and excellence, Cellnex has renewed its certifications on quality management, environmental management, occupational health and safety, management of research, technological development and innovation (R&D+i) and information security management.
The renewed certifications are ISO 9001 on quality; ISO 14001 on environment; OSHAS 18001 on occupational health and safety; UNE 166002 on research, development and innovation; ISO 17025 on competence of testing and calibration laboratories; and ISO 27001 on information security management.
EFQM 500+ European Seal of Excellence
Cellnex has been awarded the EFQM 500+ European Seal of Excellence, in recognition of the excellence of its business management, both in-house and externally. The Seal recognises companies whose organisation can achieve sustained success, creating a management model based on best practice and, in turn, enhancing the competitiveness of European industry.
The awards are not an end in themselves for the organisation but rather the consequence of working in a certain way in pursuit of excellence.
Social contribution
Cooperation with TV3 Telethon
Cellnex has been taking part in the TV3 Telethon for more than 10 years. Its participation has focused on the provision of a free connection service between the various call centres and the TV3 production centre.
In 2015, however, it made a financial contribution (€9,000) as the service it provided previously is now managed by another Company.
Cooperation with law-enforcement agencies and emergency services
In some Cellnex centres located in protected areas, hydrants have been installed for use by fire-fighters if required. These hydrants are connected to the centres’ water cisterns which are an improvement to collect rainwater, store it and make it available to the security forces and emergency services in case of fire or other emergency.
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